U.S. credit‑rating downgrade lifts safe‑haven assets 📈
Gold rebounds 1.6 %, testing resistance around 3,250 USD as investors react to a fresh bout of “Sell USA” sentiment. After a week of uninterrupted gains in U.S. equities, risk appetite faded when Moody’s cut the United States’ sovereign credit rating from AAA to AA.
Key points from Moody’s assessment
-
Debt‑to‑GDP keeps climbing: The U.S. ratio has risen for more than a decade and already exceeds that of comparable economies (98 % in 2024). Despite the Trump administration’s stated budget‑cut plans, Moody’s projects the ratio will reach 135 % before 2035.
-
Debt‑service costs are ballooning: Rising yields — fueled by trade‑policy turmoil and stagflation worries — are making interest payments an ever‑larger burden. In 2024 interest consumed 18 % of federal revenue, double the 2021 share.
Gold also benefits indirectly from softer momentum in U.S. equities, which opened lower on Monday as investors turned more cautious. Budget Lab estimates at Yale University suggest that, even after the recent easing of U.S.–China tariffs, 40 % of the negative effects of duties in place before 12 May will still be felt in the U.S. economy.
GOLD (D1, H1)
Daily chart: The decline halted at the 50‑day exponential moving average (EMA50, orange) near 3,200 USD/oz.
Hourly chart: MACD and RSI momentum now favors buyers. A key resistance may emerge at 3,270 USD/oz—the area of the EMA200 and the 38.2 % Fibonacci retracement, which also coincides with a previous strong price cluster.
The material on this page does not constitute as financial advice and does not take into account your level of understanding, investment objectives, financial situation or any other particular needs.
All the information provided, including opinions, market research, mathematical results and technical analyses published on the website or transmitted to you by other means is provided for information purposes only and should in no event be interpreted as an offer of, or solicitation for, a transaction in any financial instrument, nor should the information provided be construed as advice of legal or fiscal nature.
Any investment decisions you make shall be based exclusively on your level of understanding, investment objectives, financial situation or any other particular needs. Any decision to act on information published on the website or transmitted to you by other means is entirely at your own risk. You are solely responsible for such decisions.
If you are in doubt or are not sure that you understand a particular product, instrument, service, or transaction, you should seek professional or legal advice before trading.
Investing in OTC Derivatives carries a high degree of risk, as they are leveraged based products and often small movements in the market could lead to much larger movements in the value of your investment and this could work against you or for you. Please ensure that you fully understand the risks involved, taking into account your investments objectives and level of experience, before trading, and if necessary, seek independent advice.
